Question : Law of Demand defines the relationship between price and quantity of commodities for typical goods as follows:
Option 1: Positive
Option 2: Constant
Option 3: Negative
Option 4: None of the above
Correct Answer: Negative
Solution : According to the law of demand, the quantity bought varies inversely with the price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens.
Question : Law of Demand states that there is a negative relationship between ______.
Question : Which of the following are the assumptions of the law of Demand?
Question : The law of demand states that:
Question : The law of demand states that when _____.
Question : Assertion: The law of supply states that as the price of good increases, the quantity supplied of that good also increases.
Reason: The law of supply is based on the positive relationship between price and quantity supplied, assuming other factors remain constant.
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